Technoloangy: Computing In The Business Of Borrowing

It’s no secret that computers have become a fundamental part of the work of almost every business in the world. In fact, where you find an internet connection, you will almost always find companies big and small fighting for ways to take advantage of it. You’re not here to learn about the little guys, though. Instead, this article will be surrounding large financial companies, exploring the different ways that they use computing to give out and manage their loans. With this in mind, it should be a lot easier to start taking control of the money you borrow.

Getting The Word Out

Over the last few years, the field of lending has become much more lucrative than it ever has been before. With the Internet enabling customers to take out loans without having to go to the bank, the social stigma surrounding this area is no longer in play. Instead, people are able to borrow as much as they want, and not another person ever has to know about it. As a big part of this, financial businesses will often have to use digital marketing tools to make people aware of their options. There are a couple of different routes which are used to achieve this goal, and some examples can be found below.

Advertising: Tools like Google Adsense are very old compared to a lot of the options being used for online marketing. Giving you the chance to take advantage of Google’s incredibly large portfolio of websites, your adverts could be seen on the web. These sorts of ads will use cookies, ensuring that only relevant users are exposed to your adverts.

Social Media: Of course, nowadays, the old methods used to get a company’s name out across the web don’t always work out. Instead, modern options have to be used, and social media is one of the most popular. While these sorts of websites are usually associated with wasting time in business, the power it can give in regards to outreach can be invaluable to lenders. Knowing that their customer base will be on services like this, they can take advantage of a lot of free marketing.

Other Websites: While having adverts on other websites will be a great way to get their name out, lending companies will often use another tactic to get their name out; blogging. Whether they write it themselves or pay someone else to do it, a blog is a perfect way for a financial company to boost their SEO and get more clicks on search engines.

Giving Out Loans

Finding people to give loans to is only a small part of this job. Once they have someone ready to borrow some money, a lot of tests will have to be performed to make sure that they are able to afford the repayments. Over the last few years, lending companies have been subject to increasingly stricter rules and regulations. A large part of this is because of historical lending which has caused a lot of damage to the worldwide economy. When a bank lends money which it can’t afford, governments often have to step in to make sure that the company doesn’t go bust

To make sure that people are eligible for the loans they are asking for, companies will use a metric called a credit score to test their customers. Being connected to a centralized database, businesses with the power to check this part of your life with very minimal effort. Likewise, though, customers have the same ability and can use tools like Experian to figure out their own score. If you have too many loans in the bank and on record or have a history of being bad with payments, it could be hard to get yourself in a good position with something like this.

Managing And Keeping Them Paid

One of the biggest challenges modern lending companies face is getting their money back. To begin this process, accurate records have to be kept and maintained securely to avoid any foul play when it comes to their systems. This is most commonly found in the form of a digital database and will contain a huge amount of information about a business and the customers it serves. Data centers like this are becoming ubiquitous is finance, being the very best way for a company to keep tabs on the money it has given away.

The power of tools like this comes in full force when someone doesn’t make a scheduled repayment. Sending out automatic emails, letters, and other correspondence, they will be able to let customers know when something is due. Following this, if someone routinely makes mistakes with their repayments, information may be passed directly to a financial recovery agency, and this will send a bailiff to visit them. While this sort of approach may seem cold, it is often a good idea to take people out of the job as much as possible.

Tracking Borrowers

Of course, when someone borrows money, there didn’t use to be much stopping them from simply dropping from the face of the Earth and leaving their loan forever. Computers never forget, though, and this sort of action often leads to further trouble down the line. Using a combination of social media, local government resources, and other private information, lending companies can often find people wherever they are hiding. This sort of process is often very expensive and will drain the resources of a business. With some loans, though, it could be worth their while to chase people up and get it back.

The End Of The Cycle

Once a loan has reached the end of its term, you’d think that the work of the lender has concluded. In reality, though, they will still have plenty of ways to start using technology to solve business challenges. The world of borrowing is largely controlled by a company’s ability to get repeat customers. For this reason, even when you’ve finished paying it off, a lot of lenders will want to talk about your finances going long into the future.

As one of the most common examples, businesses will often offer free support to those that they have lent to in the past. This could be general help with money, or something more specific, like helping you to improve your credit score. Either way, having an automated system to send out these details is essential. Some of these companies will have mailing lists with hundreds of thousands or even millions of entries. This makes it very important to have reliable computers in place to control this part of the company.

Along with this, a lot of lending companies also use digital communication as a large part of their lending experience. Sending out texts to offer good loans, for example, is a great way to make people realize that they need some help. Of course, some companies are subtle with this, and others are much more open, giving you the chance to make sure that your information won’t be sold or given away as part of another deal. This is essential in an age where data is one of the most valuable things in the world.

Hopefully, with all of this in mind, you will have a much better understanding of the sort of technology being used in the field of lending. Borrowing money can often be a confusing and scary process. A lot of people lack the knowledge to be able to compare and hunt for loans which suit their needs, and you will be relying on the companies themselves to help you. While this takes away some of your control, the information in this article will at least give you the chance to understand the systems being used.

Kristijan has a bachelor of science degree in Engineering in IT Technologies from the university of Zagreb. He is an SEO expert and web developer who loves all things data. In his spare time he contributes articles that are tech related to TFOT.